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— CH. 1 · FOUNDING AND HISTORICAL EVOLUTION —

Major professional sports leagues in the United States and Canada

~9 min read · Ch. 1 of 6
6 sections
  • The National Football League began in 1920 as the American Professional Football Association, a combination of teams from regional leagues like the Ohio League and the Chicago circuit. It changed its name to the NFL in 1922 after just two seasons. The league partially absorbed the All-America Football Conference in 1949 and merged with the American Football League in 1970. Today it has 32 teams all located within the United States. Major League Baseball traces its roots to the National League founded in 1876 and the American League established in 1901. These two leagues merged on an organizational level in 2000 eliminating separate offices. They have shared a single commissioner since 1920. The current structure includes 30 member teams with 29 in the U.S. and one in Canada. The National Basketball Association formed in 1949 through the merger of the Basketball Association of America and the National Basketball League. It later adopted the BAA's founding date of 1946 as its own. Four teams from the rival American Basketball Association joined the NBA following the ABA, NBA merger in 1976. The league now fields 30 teams with 29 in the United States and one in Canada. The National Hockey League was formed in 1917 as a successor to the Canadian National Hockey Association which had been founded in 1909. It took all but one of the NHA's teams. The NHL partially absorbed the rival World Hockey Association in 1979. There are currently 32 teams with 25 in the United States and 7 in Canada. Major League Soccer began play in 1996 as a requirement by FIFA for awarding the United States the right to host the 1994 World Cup. It was the first major Division I outdoor soccer league in the U.S. since the North American Soccer League operated from 1968 to 1984. The Canadian Football League organized in 1956 as a cooperative agreement between two regional leagues. It became independent from the Canadian Rugby Union in 1958. The league now consists of nine teams all based in Canada.

  • The NFL generated roughly $16 billion in revenue last year according to reports from July 2019. Television contracts account for about $9.1 billion of that total annually through deals with Amazon, CBS, ESPN, Fox, NBC, and DirecTV spanning the 2023 through 2033 seasons. Major League Baseball earned approximately $10.7 billion in annual revenue with television rights generating around $2.1 billion from national contracts with Fox, Turner, ESPN, NBC, Netflix, and Apple TV covering 2026 to 2028. The NBA reported $8.8 billion in total revenue with television deals producing $2.7 billion annually from ABC/ESPN and TNT agreements running from 2016, 17 through 2025, 26. A new deal starting in 2025, 26 will generate $6.9 billion annually split between the NBA and WNBA. The NHL brought in $5.1 billion overall with American television rights valued at $625 million annually under a contract with ABC/ESPN and Turner Sports effective from 2021, 22 through 2027, 28. Canadian rights add another $433 million paid by Rogers Sportsnet. Major League Soccer generated $2.0 billion in revenue with an eight-year media partnership with Apple paying $2.5 billion for exclusive worldwide streaming rights from 2023 to 2032. The CFL earned only $0.2 billion annually with its current television deal with TSN providing at least $50 million per year until 2026. Franchise valuations reflect these massive revenues. The median NFL franchise value reached $6.5 billion with the highest worthing $13.0 billion and expansion fees reaching $700 million as seen when the Houston Texans joined in 2002. MLB teams average $2.0 billion in value with expansion fees of $130 million. The NBA median stands at $4.7 billion with top franchises like the New York Knicks exceeding $11 billion. NHL teams average $2.1 billion while MLS clubs sit around $670 million. The CFL's lowest valuation sits at just $7 million.

  • The Green Bay Packers survive in major league sports' smallest metropolitan area with a population of 330,000 thanks to unique nonprofit corporate ownership and proximity to Milwaukee. Their fan base maintains a centuries-long waiting list for season tickets renewing every year until expiration. Most major league teams reside in metropolitan areas having populations over 2 million. All but 12 continental U.S. metropolitan areas with more than 1 million people host at least one major sports franchise. Five U.S.-based major leagues each currently have at least two teams in both the New York/North Jersey area and the Los Angeles/Anaheim market. The NHL lacks teams in southern metropolitan areas with populations over 3 million including Atlanta Houston Orlando Phoenix and San Diego. It has four teams in northern metropolitan areas under 1.5 million all located in or adjacent to Canada. The Buffalo Sabres represent the lone American team in such a size category. The CFL has nine franchises all based in Canada with seven markets hosting teams every year since 1958. No other Canadian market has ever had a CFL team of its own except Hamilton Ontario and Regina Saskatchewan. The largest TV market without a major franchise is the Hartford, New Haven covering all of Connecticut except former Fairfield County where the Whalers left in 1997. From 1995 to 2016 second-place Los Angeles had no NFL teams while ninth-place Washington D.C. lacked an MLB team from 1972 to 2004. Austin FC started play in 2021 as the first and only MLS team in a market not also occupied by another Big Four team. The newest market any of the Big Four leagues entered was Las Vegas receiving the Golden Knights in 2017 and Raiders in 2020.

  • Major professional sports teams stay at the top level regardless of performance because these are closed leagues that never developed promotion and relegation systems like those in Europe. When the National League of Professional Base Ball Clubs established itself in 1876 founders judged they must make baseball's highest competition a closed shop with strict limits on team numbers. Each member received exclusive local rights guaranteeing a place year after year. This allowed owners to invest in infrastructure such as improved ballparks generating revenues needed for continental travel. No team from the top four leagues has collapsed outright since the 1970s. The last contraction occurred when the NHL's Cleveland Barons merged with Minnesota North Stars in 1978 due to financial pressures. In contrast to other leagues franchises here do not change annually based on win-loss records. Relocation remains uncommon compared to minor leagues though all top four have moved at least one franchise since 2004. The NFL relocated three teams during the late 2010s while the NHL added expansion teams including Vegas Golden Knights in 2017 Seattle Kraken in 2021 and Utah Mammoth in 2024. MLS operates on continuous expansion adding one or two new franchises yearly since 2005 reaching 30 teams by 2025. It tripled size from its 2004 minimum of 10 teams having contracted three previously: Miami Tampa Bay folded in 2002 and Chivas USA ended in 2014. The CFL maintained eight or nine teams except during 1994, 1995 when it temporarily expanded into the United States.

  • The NFL fought off the most rivals throughout history facing a competing start-up league every few years. One strong rival was the All-America Football Conference operating from 1946 to 1949 where three of seven teams merged with the NFL for the 1950 season. Four unrelated American Football Leagues existed before the last merged with the NFL in 1970 after winning the final two pre-merger Super Bowls. The World Football League ran 1974, 1975 while the United States Football League operated 1983, 1985. The Canadian Football League's American franchises appeared between 1993 and 1995. Thirteen of the NFL's current 32 franchises were absorbed from rival leagues including all ten AFL teams of the 1960s two from the AAFC and one from the 1936 AFL. The NBA formed in 1949 after competition between the Basketball Association of America and National Basketball League lasted three years. It fended off challenges from the American Basketball Association from 1967 to 1976 absorbing four successful franchises in a merger that adopted rule variations like the three-point shot. The NHL competed against the Western Canada Hockey League and Pacific Coast Hockey Association both folding by 1926 leaving it as sole major North American hockey league. The World Hockey Association challenged dominance from 1972 to 1979 offering higher salaries invalidating the reserve clause forcing bidding wars until merging in 1979. The CFL faced threats from parliamentary legislation proposed in 1974 called the Canadian Football Act which would have given it government-endorsed monopoly status prohibiting other leagues from playing games in Canada.

  • All major North American professional sports leagues use draft systems assigning prospective players to teams ensuring parity so losing records pick early while champions pick last. Three top leagues possess sophisticated player development systems with most MLB players developed through minor league baseball assigned to appropriate levels after drafting. College baseball growth has seen more players delay entry into the MLB draft opting for collegiate summer baseball gaining experience while maintaining eligibility. Individual team scouting staffs shrank giving way to commercial services. Entering majors directly from high school or college remains rare with few reassigned quickly to minors. Clubs sign many players from Latin America recruiting also from Japanese leagues. The NBA's talent comes mostly from college and high school though minimum age rules ended direct high school drafting beginning in 2006. Its developmental G League implemented in 2001 performs farm system roles helping market reach but teams frequently recruit overseas mostly Europe with some from Latin America China and Australia. Prior to the G League Continental Basketball Association served as a minor league. The NFL lacks a formalized farm system sourcing almost all players from college football via its International Player Pathway Program. Drafted players join main teams immediately; if failing regular season roster placement limited numbers may assign practice squads. Teams rarely recruit from other gridiron leagues except kickers and punters. Backed World League later known as NFL Europe during 1990s and 2000s purchasing Arena Football League teams briefly in 2000s. As of 2019 Players Association opposes official minor leagues citing injury risks. Each NHL team has an affiliate in American Hockey League most with ECHL affiliations. Traditional route involves junior hockey Canadian Hockey League though since 1970s teams draft signing prospects from Europe favoring NCAA Division I over CHL. USA Hockey sanctions United States Hockey League and North American Hockey League allowing retention of NCAA eligibility. Almost all draft picks assigned initially to affiliates for development.

Common questions

When did the National Football League begin and what was its original name?

The National Football League began in 1920 as the American Professional Football Association. It changed its name to the NFL in 1922 after two seasons.

How many teams are currently in Major League Baseball and where are they located?

Major League Baseball has 30 member teams with 29 located in the United States and one in Canada. The league traces its roots to the National League founded in 1876 and the American League established in 1901.

What is the current revenue generated by the National Hockey League from television rights?

The NHL brought in $5.1 billion overall with American television rights valued at $625 million annually under a contract effective from 2021 through 2027. Canadian rights add another $433 million paid by Rogers Sportsnet.

Which major professional sports leagues have teams located in both the United States and Canada?

Major League Baseball, the NBA, and the NHL all have teams located in both countries. MLB has 29 U.S. teams and one Canadian team while the NBA fields 29 U.S. teams and one Canadian team. The NHL operates 25 teams in the United States and 7 in Canada.

When did the CFL organize and how many franchises does it currently have?

The Canadian Football League organized in 1956 as a cooperative agreement between two regional leagues. It became independent from the Canadian Rugby Union in 1958 and now consists of nine teams all based in Canada.

All sources

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